Unipar Carbocloro (UNIP6) Q4 2023 earnings summary

Executive summary

• Challenging market conditions weighed on 2023 results, while average plant utilization was 81% and consolidated net cash was R$94.5m at year-end.

• Argentine inflation accounting and peso depreciation materially affected reported comparisons; managerial adjusted figures exclude these effects.

Financial highlights

• FY23 reported revenue was R$4,897.3m, down 32.6% YoY; adjusted revenue was R$5,519.9m, down 23.6%.

• FY23 reported EBITDA was R$1,226.6m, down 53.3% YoY; adjusted EBITDA was R$1,482.5m, down 45.3%.

• FY23 net income was R$791.3m, down 40.7%; income tax credits of R$125.4m partially offset lower operating results.

• 4Q23 reported revenue was R$643.6m, down 52.9% QoQ; adjusted revenue was R$1,237.5m, down 6.9% QoQ and 20.9% YoY.

• 4Q23 reported EBITDA was R$83.6m, down 70.4% QoQ; adjusted EBITDA was R$236.5m, down 24.3% QoQ and 32.7% YoY.

Outlook and guidance

• Bahía Blanca began a gradual restart on January 9, 2024 and resumed its normal operating pace in February.

• A 12-year US$42.9m Euler Hermes financing will fund the initial stage of Cubatão’s technical modernization.

• IMF projections cited global growth of 3.1% in 2024 and 3.2% in 2025; Brazil growth was forecast at 1.7% in 2024, while Argentina faced a negative GDP forecast.